Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72464
Authors: 
Inderst, Roman
Peitz, Martin
Year of Publication: 
2013
Series/Report no.: 
ZEW Discussion Paper 13-020
Abstract: 
Contractual and regulatory provisions for access affect incentives to invest in an upgraded network and, in particular, a next-generation access network. Investment decisions are made under uncertainty and have to be made over time. This papers provides a framework for taking uncertainty, risk aversion, and the timing of investment explicitly into account. First, it evaluates various access price policies in a framework in which the incremental value over the legacy network is uncertain. Second, introducing risk aversion, the access price structure turns out to be critical for the risk profile of the investing telecom operator and of the access-seeking alternative operator. Third, some implications of the time structure of access payments are derived.
Subjects: 
NGA
investment under uncertainty
access price rule
telecommunications
JEL: 
L1
L5
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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